Bullish Engulfing
A two-candle reversal where a large up candle completely engulfs the prior down candle's body — a sign momentum flipped to buyers.
In a bullish engulfing, a small red (down) candle is followed by a larger green (up) candle whose body opens at or below the prior close and closes above the prior open, fully covering it. The shift from selling to strong buying in one session is the message.
It carries more weight after a pullback or at support, on rising volume. Like all candle signals it's strongest when it agrees with the larger trend and structure.
On StockSetups
Bullish engulfing is in the StockSetups bullish candlestick set; when it confirms a chart-pattern breakout or retest, it strengthens the setup's read on the dossier.
Scan the whole market free →Related terms
Get daily signals & real-time alerts.
StockSetups scans ~12,300 US stocks & ETFs after every close and sorts every long setup into four ranked lanes — each with a trade plan — plus an always-on engine firing 35+ real-time intraday alerts. Free for 14 days, cancel in one click.
Start free — 14-day full access →